It is an unfortunate fact that the topic of bankruptcy is quite common nowadays. Sustained unemployment has led many people to file bankruptcy recently. Prior to making the decision to file a petition, you need to have a thorough understanding of the topic so that you act in your own best interest. This article can help you with that.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Don’t touch retirement accounts unless you don’t have a choice. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Always be honest when filling out paperwork. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
If bankruptcy is an option for you, secure the services of an attorney. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Consider filing for Chapter 13 bankruptcy. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. However, if you were to miss a payment, the court would dismiss your case right away.
Once your initial filing is complete, it is time to take some time to relax a little. The filing process is extremely stressful for a lot of the people who go through it. That stress could lead to complete depression, if you do not take the necessary steps to fight it. Once your petition is in the hands of the judge, all you can do is wait.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. But, such emotions get you nowhere, and they can cause significant mental issues to emerge. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. For instance, you are not allowed to move assets from your name to someone else’s for a year before you file. Also, it is against the law for a person to acquire more debt on their credit card prior to filing.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. If you forget any items, your filing could be rejected. Make sure that you add very small sums, even if you believe that they aren’t important. Some things to be included are: current loans, valuable vehicles and side jobs.
Make your decision wisely when you select a bankruptcy attorney. Interview your prospective attorney regarding education and experience. Sort through your different options to find an experienced lawyer who has all the necessary credentials. You can check histories of attorneys online, including disciplinary records and backgrounds.
You may not want to delay your bankruptcy if you secure a higher-paying job just prior to filing. It might still be wisest to file for bankruptcy. When you file for bankruptcy tends to make a huge difference. Should you file prior to earning your first paycheck, that money will not be considered when it comes to how you will repay.
When it comes to filing for bankruptcy, never lie, no matter what your financial situation is like. Lying concerning your financial situation will not help you out of this situation. This would be breaking the law. If you withhold information about these things, you risk spending time in prison!
Look over your debts before filing for bankruptcy to make sure they will clear your credit report, as you would not want to file unnecessarily. There are some types of debt (e.g., student loans, child support) that are not dischargeable in bankruptcy. Rather than sending a student loan through the bankruptcy process, you should consult with a credit counseling agency to see if the payment can be lowered.
As you read at the start of this article, bankruptcy has become a very common process now due to the economy. Use the tips you just read to make good decisions and remain in control of your financial situation.